For the past 15 months, Nigeria’s poultry industry has suffered some setbacks due to the pressure and losses caused by the Covid-19 pandemic and the increasing price of grains.
The situation affects farmers heavily as many of them closed their poultry farms and some others slaughter malnourished chickens to deal with the increasing hike in production cost caused by high maize price – a major input that accounts for the major cost of poultry feed.
In recent years, Nigeria has witnessed a decline in maize output due to the devastating impact of climate change, obstruction of the supply chain influenced by the covid-19 pandemic, and increasing insecurity in the country.
According to data from the Federal Ministry of Agriculture, Nigeria is currently producing about 10.5 million metric tons annually against the demand of 15 million metric tons, with a supply-demand gap of 4.5 million tons annually.
The 2020 United States Department of Agriculture (USDA) grain report states that Nigeria’s 2020/21 midyear maize production is at 9 million tons, a 13 percent reduction when compared to 11.5 million tons forecasted last year.
The reduced supply in 2019 and 2020 forces maize price to increase to a record N250,000 per ton which serves as a major threat to the food and beverage industry, poultry industry, and Nigeria’s food security.
Chairman of Poultry Association of Nigeria (PAN) – delta state chapter, Alfred Mrakpor said “The rising cost of maize is threatening the livelihood of many poultry farmers and players in the feed value chain – thus plunging the economy into a deeper crisis.”
Mrakpor stated that the high prices of maize have instilled fear among livestock feed producers in the country.
Many Nigerians cannot buy chicken and eggs due to the hike in prices of both products by over 50% making farmers transfer the increased cost to consumers, therefore putting the consumption of animal protein at risk.
To assist in reducing the pain Nigerians have suffered due to the maize crisis, the Central Bank of Nigeria, CBN has started disbursing 300,000 metric tons of maize through its strategic anchors facilitated by the CBN-financed Anchor Borrowers’ Programme (ABP) and other drivers in the supply chain.
After releasing its first set of 50,000 MT of maize by the CBN and its partners, maize prizes have started reducing in the country.
BusinessDay survey at major grain markets in Lagos shows that a metric ton that was sold N250, 000 in January now sells for N180, 000 per metric ton.
General Manager –administration and corporate affairs, Amobyng Nigeria Limited, Dr. Agboola Belgore, commended the CBN’s effort for releasing the 50,000MT of maize to major feed millers while compelling the apex bank to sustain the intervention and ensure the crops’ price is sustained.
Belgore said, “The price level in my opinion should not be above N130, 000 per ton unlike the current price of N180, 000 per ton obtainable despite the good intention of the intervention.”
The General Manager further said, “With the news of the CBN intervention, prices of maize stopped climbing and by the time of the actual release of the 50,000MT price crashed to around N180, 000 per ton providing a welcome relief to feed millers, and by extension poultry farmers.”
He believed that releasing another set of 300,000MT of maize will further help crash maize prices.
Similarly, the executive director, Animal Care, Opeyemi Agbato, said the release of the maize to key feed millers under the CBN’s Strategic Maize Reserve program is a much-needed intervention in the industry.
“We hope that the price of subsequent maize release, if at all, would be further reduced to as low as N135-145/ MT or about 30-35 percent lower than prevailing prices landed to the consumers to force the drop in prices of maize and cost of producing livestock feeds and food,” he said.
